Netherlands' UMG Q1 revenue flat, boosts share buyback

Universal Music

29/04/2026 16:56

Overview

Netherlands music entertainment group's Q1 revenue was flat yr/yr

Q1 adjusted EBITDA fell 3.8% yr/yr, margin declined to 21.9% mainly due to Downtown acquisition

Company increased share buyback authorization to €1 bln, plans to monetize half its Spotify stake

Outlook

UMG increases share buyback authorization to €1 bln, plans further buybacks subject to conditions

UMG says industry backdrop remains healthy, continues to pursue multi-faceted growth strategy

Result Drivers

DOWNTOWN CONSOLIDATION - Acquisition of Downtown Music Holdings boosted revenue but weighed on margins

STREAMING PRICE INCREASES - Initial pricing benefits from Streaming 2.0 agreements contributed to subscription revenue growth

MERCHANDISING WEAKNESS - Decline in Merchandising and Other revenue driven by timing of product releases and lower retail sales

Company press release: ID:nPreP5Mfra

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 2.90 bln
Q1 Adjusted EBITDA
EUR 568 mln
Q1 EBITDA
EUR 571 mln
Q1 EBITDA Margin
19.70%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy"

Wall Street's median 12-month price target for Universal Music Group NV is €25.00, about 28.9% above its April 28 closing price of €19.40

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)